Improving Housing Choices

  • 17% — Initial Cost of a dwelling
  • 17% — Cost of the Land
  • 34% — Cost of borrowing at 5%
  • 9% — Cost of Moving every 7 years
  • 20% — Cost of Maintenance and Replacement
  • 4% — Government Charges and Rates

Yearly Cost of Housing for same Value Dwelling

Traditional Loans Cost is 100 per year
Co-op Loans Cost is 55 per year

An Example set of rules for a Co-op

  • Members own the titles to the property in which they live.
  • A person can become and stay a member of the Co-op if the member is willing to have and maintain a first mortgage of 10% of the market value of the dwelling in which the member must reside.
  • Members can have second mortgages but only with the Co-op. The second mortgage yearly repayments are a minimum of 5% on the total market value of the dwelling.
  • Members get the right to invest in mortgages up to the market value of their property. They can transfer the right to other members. Members who invest get back their investment in equal yearly or monthly amounts plus 4% times the number of years the money has been invested.

Comparison between Co-op, Bank Loans and Rent

  • Co-op Member — $455,000
  • Traditional Loan — $329,000
  • Renter — $180,000

Comparison without the $100,000 deposit

  • Co-op Member — $275,000
  • Traditional Loan — $76,350
  • Renter — $0

Funding Co-ops — what are they?

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Kevin Cox

Kevin Cox

Kevin works on giving individuals control over their online information - particularly their financial information with local communities.